- 18 Jan 2024
- ICICI Securities
COMPANY REPORTED STEADY PERFORMANCE IN Q3FY24
SSWL - 231 Change: -4.99 (-2.11 %)News: For Q3FY24, Net sales came in at ₹1,111 crore (up 18% YoY) with volumes up 13% in the same period. EBITDA for the quarter stood at ₹117 crore with corresponding margins at 10.5% (down 50 bps QoQ). PAT for Q3FY24 came in at ₹59.4 crore (up 36% YoY, 14% QoQ). PAT for the quarter was supported by lower tax rate (16% in Q3FY24 vs. the usual trend of ~33%).
Views: The company’s operational performance was steady however falls short of our expectations. Lower tax incidence was the only solace amidst decline in share of alloy wheels. We await management commentary on growth as well as margin expansion journey going forward. At the CMP, as of FY25 numbers, the stock trades inexpensive at ~15x P/E with ~18% Return ratios profile and EV agnostic product profile (amid increasing share of alloy wheel business).
Impact: Neutral